JPMorgan Points On Completion of ‘Intensive Phase’ of Digital Assets Deleveraging

According to JPMorgan’s analysis, the crypto sphere expects an improvement in investors sentiment and growing demand in anticipation because of Ehereum’s transition to PoS algorithm. It was these factors that had a positive impact on the market’s recovery.

Analytics pointed to the markers indicating the end of the “intensive phase” of the leverage liquidations wave on long positions. Experts drew attention to the spread reduction between stETH and Ethereum.

“The extreme phase of backwardation seen in May and June, the most extreme since 2018, appears to be behind us,” the bank’s authorities said.

The experts also pointed out that BTC and ETH prices have risen by 30.82% and 72.86% respectively, since falling to lows of $17,600 and $876 in June this year.

Nigel Green, the CEO of the deVere Group, predicts that with the exit of random and mediocre investors from the crypto market, a serious increase in the Bitcoin price will begin.

“Recent months have been difficult for the market, which, like the markets for other risky assets, including equities, has been hit by a wave of gloomy investor sentiment. Sentiment was based on fears due to the global economic downturn, inflation and geopolitical factors. Cryptocurrency has not yet emerged from the forest, there may be a small and final cleanup before a significant price jump by the end of the year, ”said the businessman.

According to his opinion, BTC is obliged to inspire investors, as it being a high-quality crypto asset with an attractive valuation. The businessman noted that people began to “understand that the global economy continues to go against the wind,” however, there are assets, “for example, bitcoin, which are quite affordable.”

Green believes that confidence is returning to the crypto market. Investors are more likely to buy Bitcoin again, “taking advantage of the current low price.” The entrepreneur also expressed hope that in the near future the volatility of the first crypto coin will relatively decrease.

“As the investment frenzy of free money fades, we can see the real value of assets. Although it is down 50% from the hype and November high, Bitcoin remains the best-performing asset class of the decade,” — Green summed up.